Netflix Inc. (NASDAQ:NFLX) had previously disappointed analysts and investors, but now, the company is back in their good books. Netflix Inc. (NASDAQ:NFLX) posted their earnings report for the fourth quarter in January 2015. The report clearly suggests that the company profitability is likely to increase. It also seems that by the end of 2016, the company will be enrooted to global expansion.
The news brought so much joy to the investors that they were happy to ignore the reducing rate of member growth in U.S. Last year, the company shares had gone so low as to arrive at $325, and that too twice! But this year, the share price hiked to $478, which was a new 52-week high.
Netflix Inc. (NASDAQ:NFLX)’s share prices wiggle a lot, but the business is not volatile itself. Still, it will be beneficial for the long-term investors to pay attention to a few important things. Three important dates for the investors in the next month are 6 March, 20 March and 31 March.
This year Netflix Inc. (NASDAQ:NFLX) will bring forward original content. The executive team of Netflix Inc. (NASDAQ:NFLX) is planning to launch 320 hours’ worth of original series. This is thrice the amount of original content that was released in the previous year. The investors should look out for the release of Unbreakable Kimmy Schmidt on March 6 and Bloodline on March 20.
Unbreakable Kimmy Schmidt was going to be aired on NBC originally. However, the company executives were afraid that they are unable to support the show enough to build a strong, loyal base of viewers; so they sold it to Netflix Inc. (NASDAQ:NFLX). The latter isn’t worried about this though and is happy with the purchase.
Netflix Inc. (NASDAQ:NFLX)’s first deal with Sony studios resulted in the show Bloodline. This is a thriller show that can potentially attract many followers and viewers. The company, Netflix Inc. (NASDAQ:NFLX), would launch a major marketing plan for the launch of Bloodline. This will not only tempt viewers and customers but also increase the number of subscribers.
The downside for acquiring more original content is the cost of course. Just recently, the cash flows became negative. It looks like that the company would remain on this track for at least a year before they can assume positive cash flows again. The company had to take loans worth $1.5 billion in the current month.
March 31, the third most important date in the next month, is the closing date for yet another quarter. This quarter is expected to report an addition of 4 million new subscribers from all over the world. This would mean that the company is growing faster than it was in the same quarter last year. The revenue for the quarter should increase by 31% and reach $1.4 billion. The profitability of the company will also increase. But in terms of cash flow and profit, Netflix Inc. (NASDAQ:NFLX) may have a weaker year relatively.
